India’s oil demand is estimated to jump 8.2 per cent to 5.15 million barrels per day in 2022 as the economy proceeds to rebound from the harm induced by the pandemic.
The Organization of Petroleum Exporting Countries (OPEC) in its recent monthly oil market report estimated the world’s third-biggest energy buyer to add 0.39 million barrels per day (bpd) of crude oil demand in 2022.
India’s oil demand surged from 4.51 million barrels per day in 2020 to 4.76 million bpd in 2021, reporting a 5.61 per cent growth. But, this was less than pre-pandemic levels. Oil need in 2018 was 4.98 million bpd, which surged up to 4.99 million bpd in the last year before the pandemic arrived.
“With anticipated strong economic development of 7.2 per cent in 2022 and predicted rapid containment of Omicron in the near future, oil demand is believed to recover,” the OPEC report announced. Mobility has proceeded to improve, as average driving activity in India boosted. The demand this year has surged as states relaxed COVID-19 regulations in line with decreases in new infections.
“Gasoline (petrol) and diesel are set to be extremely favoured by the usual rise in GDP and the already recovering mobility and following driving activity,” it asserted. Similarly, in line with a prediction for a robust economy in 2022, the industrial sector will give support for diesel, LPG and naphtha usage.
Jet kerosene market growth is predicted to be slower in 2022 because of travel challenges, especially business-related, it announced. “Nevertheless, India is expected to grow by 0.4 million bpd year-on-year in 2022.” The prediction by OPEC is in line with the government figures for fuel demand growth. According to the oil ministry’s Petroleum Planning and Analysis Cell (PPAC), India’s fuel demand is possible to grow 5.5 per cent in the fiscal year starting from April 1.
Fuel consumption in 2022-23 is estimated to surge to 214.5 million tonnes (4.3 million bpd) from 203.2 million tonnes expected sales in the present fiscal year ending March 2022.
While the OPEC predictions are for crude oil need, the PPAC projection is for fuel. Crude oil is modified into fuel such as petrol and diesel at refineries and not all of the petroleum products generated are expended in the country. A crucial amount of petroleum products are also exported, resulting in conflict between crude oil and fuel demand measures.